Continental Casualty Co. v. United States

HOLMES, Circuit Judge.

This appeal is from a judgment against appellant, as statutory surety, for damages resulting from a breach of contract. The principal was adjudged a bankrupt, and his estate was insufficient to pay any part of this liability, although the referee recognized the government as a creditor of the estate for the amount claimed. The surety denied liability, on the ground that the government repudiated the contract, and also made a reconventional demand against the government for tetained percentages and credits held by it, claiming subrogation thereto by virtue of having paid…